AST SpaceMobile (ASTS, Financial) has achieved a significant milestone by finalizing a settlement term sheet with Ligado Networks, Viasat, and Inmarsat Global. This agreement enables AST SpaceMobile to gain long-term access to up to 45 MHz of premium lower mid-band spectrum in the United States and Canada for its direct-to-device satellite operations.
As part of this arrangement, Inmarsat will support AST SpaceMobile's regulatory applications in the U.S. and Canada, ensuring long-term usage rights for 80+ years to up to 40 MHz of L-Band MSS spectrum and an extra 5 MHz in the 1670-1675 MHz Band. The transaction enhances AST SpaceMobile's capabilities by combining its existing plans with access to this substantial spectrum block, strengthening its space-based network.
The settlement, awaiting court approval expected by June, relies on regulatory nods and other closing conditions. In anticipation of these approvals, AST SpaceMobile has secured a $550 million institutional financing commitment. This funding will facilitate payments, including $420 million to Inmarsat by October 31 and additional payments upon regulatory approval and transaction closure.
AST SpaceMobile's current BlueBird satellites, operating in low Earth orbit, provide non-continuous cellular broadband services. Upcoming next-generation Block 2 BlueBirds are set to offer significantly increased bandwidth and enhanced data transmission speeds, positioning AST SpaceMobile to offer comprehensive coverage and advanced communications capabilities.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for AST SpaceMobile Inc (ASTS, Financial) is $41.77 with a high estimate of $64.00 and a low estimate of $30.00. The average target implies an upside of 13.14% from the current price of $36.92. More detailed estimate data can be found on the AST SpaceMobile Inc (ASTS) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, AST SpaceMobile Inc's (ASTS, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
ASTS Key Business Developments
Release Date: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- AST SpaceMobile Inc (ASTS, Financial) is accelerating its launch and scaling of its network with 5 scheduled launches over the next 6 to 9 months.
- The company plans to deploy over 60 satellites during 2025 and 2026, providing continuous coverage in key markets such as the United States, Europe, and Japan.
- AST SpaceMobile Inc (ASTS) has secured a $43 million contract with the US Space Development Agency, highlighting the government's interest in their technology.
- The company has received special temporary authority from the FCC for FirstNet on public safety's Band 14 spectrum, enabling space-based cellular broadband connectivity for first responders.
- AST SpaceMobile Inc (ASTS) has a strong cash position with $874.5 million at the end of the first quarter, up from $567.5 million at the end of the fourth quarter of 2024.
Negative Points
- The company faces higher launch costs due to increased demand and tariffs, impacting their financial projections.
- AST SpaceMobile Inc (ASTS) anticipates a significant increase in capital expenditures in the second quarter, driven by manufacturing and launch contract payments.
- The cost per satellite has increased to a range of $21 to $23 million, up from previous estimates of $19 to $21 million, due to higher launch and materials costs.
- The company is still in a pre-monetization stage with only modest revenue recognized, primarily from limited government application contracts.
- There is uncertainty regarding the successful launch and deployment of Block 2 Bluebird satellites, which is critical for achieving revenue targets.
